By Jaideep Kewalramani
In November 2022 Deloitte conducted a survey and released the ‘The global semiconductor talent shortage’ that predicts more than 1 million additional skilled jobs by 2030. Interestingly, India did not even find a mention in that report. Come 2023, in the latest ‘2023 Semiconductor Industry Outlook’ report by Deloitte, India finds a mention with a remark that ‘India has strong design and engineering talent, though it lacks domestic chip manufacturing capabilities’. India imports over USD 5 billion of semiconductors each year – this presents a great opportunity to develop this industry locally.
Let us look at why India is the new Semiconductor destination from a global perspective. The world now understands that when India does things, it does it at scale – Drug Manufacturing, IT, Automobile, Education, Banking, Digital Transactions et al. We are the only reliable partner for both sides of this polarized world order and the bright spot in the economic order. India has talent, labor, scientific eco-system and the will to establish a new sunrise industry. We are perfectly poised to make our space in this supply chain.
Two recent events have led us to this point, the great chip shortage during the Covid lockdowns and that the AI revolution is upon us. (Generative AI will transform all industries, entire workforce in years to come and add over $7 T to the global economy). This AI wave is solely hinged on the capacity to develop and design Semiconductors.
It will take years if not decades to match the ecosystem that Taiwan, Japan, Germany, China or the US have built. India has taken the first step and should be able to accelerate this with the combination of great technology transfer partnerships via Make in India, attracting FDI and domestic investments. India can grab a seat and develop a niche for itself in the global Semiconductor industry.
The global rush to localize semiconductor production is intensifying, which is aggravating the problem of a talent and skill gap in the industry. According to Deloitte, the workforce for the semiconductor industry will need to increase by more than 1 million skilled people by 2030. Over 1 lakh engineering and smart manufacturing graduates will be required for this industry. India can command thousands of these jobs as the industry starts to grow.
In the semiconductor sector, the distribution of jobs is typically categorized based on job profiles, and the breakdown is as follows:
Entry-level jobs: Approximately 60-80% of positions fall into the entry-level category. These roles are often filled by recent graduates or individuals with limited work experience in the industry. Entry-level positions may include roles like semiconductor technician, junior engineer, or production operator.
Mid-level jobs: Around 15-20% of jobs fall into the mid-level category. These positions require a higher level of expertise and experience compared to entry-level roles. Mid-level jobs may include semiconductor design engineer, process engineer, or quality control specialist.
Senior-level jobs: About 10-20% of positions are categorized as senior-level roles. These roles demand significant experience and expertise within the semiconductor industry. Senior-level jobs may include positions such as senior design architect, research scientist, or managerial positions.
What are some of the most in-demand skills in these job profiles?
Within the semiconductor sector, certain skills are highly sought after and critical for various job profiles. Some of the most in-demand skills include:
Design: Design skills are crucial for positions related to semiconductor chip design, layout, and circuitry. Professionals with expertise in using design software and creating efficient and innovative chip architectures are highly valued.
Engineering: Engineering skills play a significant role across different levels in the semiconductor industry. Whether it’s electrical, electronics, or process engineering, these skills are essential for designing, testing, and manufacturing semiconductor components.
Research and Development (R&D): The semiconductor industry heavily relies on R&D to drive innovation and stay ahead of the competition. Professionals with a strong background in research and development contribute to the creation of cutting-edge technologies and products.
Concerning talent acquisition, what is typically the hiring strategy of companies? Are they able to attract talent?
In the semiconductor industry, companies employ various hiring strategies to attract and acquire talent. Some common approaches include:
Campus Hiring: Many semiconductor companies actively participate in campus recruitment programs, partnering with universities and technical institutions to hire fresh graduates. Campus hiring allows companies to identify and nurture young talent with potential.
Lateral Hiring: Companies also engage in lateral hiring, wherein they seek experienced professionals from within the industry or related sectors. Lateral hiring helps companies bring in individuals with specific expertise and skills.
Re-pat Hiring: Re-pat hiring refers to attracting Indian professionals who have gained experience and expertise abroad. These professionals often bring valuable international exposure and knowledge back to the Indian semiconductor industry.
Expat Hiring: At the senior and high-tech levels, companies may hire expatriates, individuals from other countries, who possess specialized skills and knowledge not readily available locally.
Overall, the semiconductor industry in India has been successful in attracting talent by offering competitive compensation packages, opportunities for career growth, and exposure to cutting-edge technologies.
How have open positions changed in the last 3 years?
The semiconductor industry in India is experiencing rapid growth, but precisely quantifying the change in open positions over the past three years can be challenging due to its dynamic and evolving nature. As a sunrise industry, the demand for semiconductor professionals has surged significantly. While specific data may vary across companies and sub-sectors, a conservative estimate suggests a Compound Annual Growth Rate (CAGR) of around 100% in open positions over the last three years.
This explosive growth can be attributed to factors such as increased demand for semiconductors in various applications, the emergence of new technologies like the Internet of Things (IoT), artificial intelligence, and autonomous vehicles, as well as the Indian government’s focus on promoting the electronics and semiconductor manufacturing sector through initiatives like “Make in India.”
Please note that the growth rate provided is an approximate estimate and should be taken as a general indication of the industry’s remarkable expansion in terms of job opportunities.
The author is the COO and Head of Employability, TeamLease Edtech.